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Massachusetts Sales Tax

On this page you will find handy sales and use tax information about Massachusetts.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Massachusetts that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

6.250%
Range of Local Rates

0%
Local Rates Apply to Use Tax

N/A
Remote Seller Nexus Rules
ECONOMIC NEXUS

10/1/2017 – challenged but not stayed – see state notice

New thresholds: 10/1/2019
MARKETPLACE NEXUS

10/1/2019
Sales Tax Holidays
Annual Sales Tax Holiday

2024 Dates TBA

1. During the sales tax holiday, non-business sales at retail of single items of tangible personal property costing $2,500 or less are exempt from sales and use taxes, subject to certain exclusions.

Visit the Massachusetts DOR’s web page for more information.
Sales Tax Amnesty
Status

Inactive

Amnesty Filing Dates

April 1, 2010 - June 1, 2010

Go to Massachusetts Amnesty Page
AMNESTY INCLUSION PERIODS

Any taxable period ending on or before December 31, 2009.

TAX TYPES AND CONDITIONS

Existing business liabilities, including sales/use tax, sales tax on telecommunications services, meals tax, withholding income, room occupancy excise, gasoline excise, special fuels excise, and boat/recreational vehicles sales tax; Post amnesty penalty for taxpayers who fail to come forward of $500 will be assessed.
AMNESTY BENEFITS

All penalties waived.

Status

Inactive

Amnesty Filing Dates

September 1, 2014 - October 31, 2014

Go to Massachusetts Amnesty Page
AMNESTY INCLUSION PERIODS

Assessments prior to July 1, 2014.

TAX TYPES AND CONDITIONS

Sales and use taxes, boat and recreational vehicle sales taxes; cigarette, cigar, and smoking tobacco excise taxes; convention center financing fees on rooms, parking and certain tours; club alcoholic beverage excise taxes; gasoline excise taxes; individual income taxes; material man sales taxes; meals taxes, including local option taxes; room occupancy excise taxes, including local option taxes; special fuels excise taxes; and withholding taxes.
AMNESTY BENEFITS

Waiver of penalties.

Status

Inactive

Amnesty Filing Dates

March 16, 2015 - May 15, 2015

Go to Massachusetts Amnesty Page
AMNESTY INCLUSION PERIODS

Tax years or periods that were stated on a Notice of Assessment issued by the Commissioner of Revenue on or before January 1, 2015.

TAX TYPES AND CONDITIONS

Corporate excise (including financial institutions, insurance, public utilities, and banks), estate taxes, fiduciary income taxes and individual use tax on motor vehicles.
AMNESTY BENEFITS

Penalties waived.

Status

Inactive

Amnesty Filing Dates

April 1, 2016 - May 31, 2016

Go to Massachusetts Amnesty Page
AMNESTY INCLUSION PERIODS

Three-year limited lookback period.

TAX TYPES AND CONDITIONS

All tax types administered by the Massachusetts Department of Revenue are included, with the exception of Preferred Provider excise and those covered under the International Fuels Tax Agreement. More details.
AMNESTY BENEFITS

Tax penalties and any interest due on those penalties will be waived.

Administration Information
Streamlined Sales Tax Status

Advisory State
NUMBER OF TAXING AUTHORITIES

1 Sales Tax Jurisdiction

HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period. Effective April 1, 2021, businesses that have collected and remitted $150,000+ in sales tax or room occupancy and meals tax in the preceding calendar year must remit tax through the 21st day of the month no later than the 25th day of the month.
Exemption Information
RESALE CERTIFICATE

Massachusetts Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: manufacturing, R&D, food (other than restaurant meals) and clothing items $175 or less, periodicals, admission tickets, utilities and heating fuel, telephone services to residential users, transportation services, personal or professional services, casual and isolated sales, resales, out-of-state delivery, drop shipments, periodicals, costumes, US Flags

 

Entity types of exemptions: exempt organizations, sales to 501(c)(3) organizations, government agencies, contractors, manufacturers

 

Massachusetts Exemption Certificate Forms
History & Fun Facts
HISTORY

  • Massachusetts first imposed its sales and use tax in 1966.
FUN FACTS
  • Dressing up for Halloween gets a tax break in Massachusetts. Costumes and children’s novelty costumes are exempt from sales tax if they are under $175.
  • Many states impose sales tax on prepared foods and takeaway foods. In Massachusetts, baked goods sold in units of 6 or more for takeout, including any variety of items totaling 6 or more servings qualify for the state’s sales tax exemption on food.

Massachusetts Issues Economic Nexus Directive for Remote Sellers

On April 3, 2017, the Massachusetts Department of Revenue issued a directive with economic nexus provisions for out-of-state internet sellers, including the adoption of an administrative bright line rule.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Checkout Bags Taxable in Massachusetts

Massachusetts requires charge for checkout bags, which are also subject to state sales tax, effective 03/31/16. More…

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Massachusetts Enacts 2016 Amnesty Program

Massachusetts enacted a tax amnesty program to run 04/01/16 to 05/31/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Massachusetts 2016 Budget Authorizes Amnesty Program

Massachusetts authorized a 60-day tax amnesty program as part of the 2016 budget. More…

Massachusetts Enacts 2015 Tax Amnesty Program

Massachusetts enacted a two-month tax amnesty program beginning March 16, 2015 and ending May 15, 2015.

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

Massachusetts Enacts Tax Amnesty Program

Massachusetts has enacted legislation creating a tax amnesty program, which will take place during September and October 2014.

Virtual Event Center Subscriptions Taxable in Massachusetts

Subscriptions to a taxpayer’s virtual event center are subject to Massachusetts sales and use tax as prewritten software. The virtual event center is a platform consisting of a customizable website that allows customers to create their own online events. Customers…

Database Subscriptions Not Taxable in Massachusetts

Subscriptions to a taxpayer\’s electronic database are not subject to Massachusetts sales and use tax because the taxpayer is selling database services and not the use of software.

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Massachusetts Revises Cloud Computing Ruling

Massachusetts has revised a letter ruling addressing the sales and use tax treatment of cloud computing products.

Massachusetts Enacts Tax on Computer Services – Repealed Retroactively

The Massachusetts Senate and House of Representatives have voted to override a veto from Governor Deval Patrick and enact legislation that imposes sales and use tax on computer system design services and the modification, integration, enhancement, installation, or configuration of standardized software.

Massachusetts Issues Guidance on Promotional Vouchers

The Massachusetts Department of Revenue has provided guidance on the tax treatment of promotional vouchers sold by companies such as Groupon and LivingSocial.

Sale of Virtual Computer Offerings Taxable in Massachusetts

Sales of virtual computing offerings, including remote access, remote support, and online conferencing, are subject to Massachusetts sales and use tax when sold to customers located in Massachusetts. The sales are subject to tax because the true object of the…

Amazon Enters into Negotiated Agreement with Massachusetts

Massachusetts Governor Deval Patrick and Amazon have announced that Amazon will begin collecting and remitting sales tax in Massachusetts, effective November 1, 2013. Amazon has indicated that it will work with the state toward enactment of federal legislation to resolve…

Wind Turbine Not Subject to Tax in Massachusetts

A wind turbine used to provide electricity to a plant that produces semiconductor processing equipment is exempt from Massachusetts sales and use tax since it is machinery used directly and exclusively in furnishing power to an industrial manufacturing plant. Sales…